Sunset Strip | Aussie Afternoon Institutional Market Wrap

Mathan Somasundaram

Deep Data Analytics

Aussie market delivered another negative day with weaker global markets and commodities. The market made a mid-day recovery but the comments from RBA governor regarding inflation target and property bubble worries pulled the market back down. We finished below the 5300 psychological level while currency is now below 72 cents. We are in the “Sell in May and Go Away” period for the US market and volatility index is pointing to profit taking. We have been telling investors to take profit since early May when the market reached above 5300 as the multiples were not supported by the yield premium or the growth outlook. There are more RBA speeches later this week, but the key will be US Fed Chair Janet Yellen’s speech on Friday. As we have been warning clients since early May > Market has already peaked in the current cycle…nearly 2 weeks ago…we are at the early stages of the May sell off….no need to panic, take advantage of it!!! (VIEW LINK)


Mathan Somasundaram
Founder & CEO
Deep Data Analytics

Over 25 years’ experience in the finance/tech industry. Mathan has worked extensively in all parts of the finance sector (i.e. County NatWest, Citi, LIM, Southern Cross, Bell Potter, Baillieu Holst and Blue Ocean Equities). Currently Founder and...

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.

Comments

Sign In or Join Free to comment